**Policy Summary: Re-issuance of 8.13% Government Stock 2045**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the re-issuance and sale of the 8.13% Government Stock 2045, with a total nominal value of ₹2,000 crore. The sale will be conducted via a price-based auction using a multiple price auction method, managed by the Reserve Bank of India (RBI) in Mumbai.
Up to 5% of the notified amount is reserved for allotment to eligible individuals and institutions through a non-competitive bidding facility. The auction is scheduled for August 5, 2016, with non-competitive bids accepted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon via the RBI's e-Kuber system.
The stock has a tenure of thirty years, commencing from June 22, 2015, and will be repaid at par on June 22, 2045. The issue date and payment date for successful bidders is August 8, 2016, which will include accrued interest from June 22, 2016, to August 7, 2016. Interest will be paid semi-annually on June 22 and December 22. The stock is eligible for When Issued trading as per RBI guidelines. The General Notification F. No. 4 13WM2008, dated October 8, 2008, also applies to this sale.
Key Entities Referenced
Ministry of Finance: The ministry responsible for financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and related matters.
8.13 per cent Government Stock 2045: A specific government bond being reissued through auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and where the auction results are displayed.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A prior notification providing general terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid for a portion of the government stock without competitive bidding.
EKuber: The Reserve Bank of India Core Banking Solution system used for submitting bids in electronic format.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated August 01, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 8.13 per cent Government Stock 2045
F. No.4 (3) W&M/2016(iii): Government of India hereby notifies sale of ‘8.13 per cent Government Stock
2045’ (hereinafter called 'the Stock') for an aggregate amount of रु 2,000 crore (nominal). The sale will be
subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the
terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8,
2008 issued by Government of India.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the
manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated
October 8, 2008 by a price based auction using multiple price auction method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals
and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of
Government Securities (Annex).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on
August 05, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on August 05, 2016. The non-competitive bids should be
submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between
10.30 a.m. and 12.00 noon.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the
Reserve Bank of India.
Tenure
6. The Government Stock will be of thirty years tenure commencing from June 22, 2015. The Stock will
be repaid at par on June 22, 2045.
Date of issue and payment for the stock
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on
August 05, 2016. The payment by successful bidders will be on August 08, 2016. i.e. the date of re-
issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted
in the auction from the date of last coupon payment i.e. June 22, 2016 to August 07, 2016
Interest
8. Interest at the rate of 8.13 per cent per annum will accrue on the nominal value of the Stock from the
date of original issue and will be paid half yearly on December 22 and June 22.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India